1. Field of the Invention
The present invention relates generally to a security code activation control system for controlling the operation of equipment which is leased or sold on an extended payment plan and more particularly to such a system which is self-contained and in which a combination security code is automatically changed with each billing cycle. In order for the lessee or purchaser to continue to be able to operate the equipment, he must make timely payments, at which time he is given the next security code.
2. Description of the Related Art
The sale of industrial equipment, such as trucks, excavation and grading equipment, forklifts, garage lifts, cranes, etc. is often done on extended payment plans. In addition, the leasing of such equipment, with its minimal down payment terms and accounting, tax and cash flow advantages, is ever increasing. Furthermore, for many of the same reasons, the leasing of major household appliances and automobiles to both consumers and businesses is also on the rise. While leasing and extended payment sales have proven to be advantageous to both the manufacturers and retailers, as well as the ultimate consumers, the timely collection of lease payments and installment sales payments is a constant challenge.
The time honored tradition of simple repossession of the sold or leased goods is becoming less practical all of the time. For example, lessees and installment purchasers have been given ever increasing legal rights under due process decisions of the courts. Damage suits against repossessing parties are a constant threat. Furthermore, in a society in which violent confrontation is becoming more common, there is a physical threat to the repossessing party. In the case of household appliances which are installed within a household, access for repossession purposes is problematical. In the case of industrial equipment such as garage lifts, elevators, hydraulic doors. etc., once installed, they become an integral part of the lessee's building, making physical repossession virtually impossible. Finally, in the case of mobile items such as automobiles and trucks, simply finding the leased item is often difficult.
Various schemes have been devised in the prior art to limit the ability of a purchaser or lessee to use the equipment if he fails to make timely payments. For example, in U.S. Pat. No. 4,624,578 to Green, a rental contract timer system includes a relay which operates the rental equipment, such as a television set. The relay is, in turn, controlled by a timer which is programmable via a magnetically encoded strip to have start and stop times. The relay is only operable during the window between the encoded start and stop times. The problem with this system is the requirement for the rental agency to physically issue a magnetic strip to the renter each time he pays his rent. This strip must then be physically inserted into the timer to update the rental window. Once the rental window is updated, no security code or card is needed to use the equipment.
U.S. Pat. No. 4,805,722 to Keating et al. teaches a vehicle anti-theft system in which authorized drivers are issued magnetic or optically encoded cards. An on board computer stores ID codes and time periods during which properly coded ID cards can operate the vehicle. If a driver's ID card is not current, the vehicle cannot be operated. Again the disadvantages of this system include the requirement for physically issuing and periodically changing the information on an ID card as well as the simultaneous updating of matching information to be stored within the computer.
Other time controlled limited access systems have been devised for appliances, hotel rooms, etc. All of such systems require either a card or other encoded device and/or the periodic updating of activation code or allotted time window information within the control system from an outside source. Such systems work well for rental appliances which must be returned to a central rental location, for example, or for hotel room locks which are hardwired to a central control panel. However, no suitable time dependent activation security code system has been devised for leased or purchased equipment which remains in the possession of the lessee or purchaser, but for which periodic time payments must be made.
It is clear then that a need exists for a time dependent security activation code system for controlling activation to leased or time purchased equipment. Such a system should include a self-contained code activated activation panel which requires a user to enter a valid code before the equipment can be used. The code should be changed at periodic time intervals, which coincide with monthly or quarterly lease periods, for example. These periodic code changes should be automatic, requiring no personnel from the lessor or seller to have access to the equipment, and requiring no telephone or other communications link between the lessor or seller and the equipment.